The number of properties being bought and sold remains at record levels even though February is traditionally a quiet month, according to RP Data, which monitors more than 90 per cent of the nation's mortgage lending.

Mortgage credit growth of 5 per cent remains one-third the level of the peaks hit in the lead-up to the global financial crisis, supporting anecdotal claims that rising property prices are encouraging existing borrowers to shop around, as well as claims of subdued borrowing at the top end and overseas money financing deals.

''It's fierce out there and could get a lot fiercer,'' said Peter Arnold, research manager at RateCity, which provides comparative rates and price information.

Some bankers are accusing competitors of lax lending standards and offering unadvertised or under-the-counter discounts to encourage new business or existing borrowers to switch lenders.

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ANZ Banking Group had the biggest recent market share increase, albeit off a low base.

A spokesman for the bank said it was ''fighting hard for business'' but denied it was the most aggressive discounter.

Building societies, online and low-overhead small lenders, such as ME Bank, are leading the charge for market share with ''switch, ditch and smile'' packages offering fixed rates below 5 per cent.

Jamie McPhee, chief executive of ME Bank, which offers a 4.84 per cent three-year fixed rate, said fixed rate volumes had more than doubled to about half of new applications.

National Australia Bank recently cut its four-year fixed lending rate to a 20-year low of 5.44 per cent and has the lowest standard variable rate of 5.88 per cent, which has been matched by ANZ.

All the big four banks, which have large wealth management divisions, are offering heavily discounted insurance and personal credit lines to back their discount mortgages.

For example, Commonwealth Bank of Australia is offering a fixed rate package that includes a 15 per cent discount on combined residential building and contents insurance, 10 per cent on car insurance, 5 per cent on loan protection and 5 per cent on first-year life insurance and income protection, according to finder.com, an online rates comparison service.

Most economists expect the Reserve Bank of Australia will leave the cash rate at 2.5 per cent when it meets next week.

''It's no wonder we are seeing borrowers sticking with variable rates,'' said Michelle Hutchison, a spokeswoman for finder.com.

''The big concern is that fixed rates are starting to rise and borrowers may miss out on securing a low rate if they want to fix their home later,'' she said.